As the government pays out nearly Rs 2,000 crore a year as subsidy for Haj flights, national carrier Air India has said that allowing private airlines to operate such flights could lead to a cut in fares.
MUMBAI: As the government pays out nearly Rs 2,000 crore a year as subsidy for Haj flights, national carrier Air India has said that allowing private airlines to operate such flights could lead to a cut in fares and reduce the subsidy burden.
Under a bilateral agreement between India and Saudi Arabia, any Indian going for the Haj has to fly by Air India or Saudia Airlines, giving the two carriers a monopoly in carrying the pilgrims.
However, a reply by Air India to a query under the Right to Information Act said: "There is no benefit to the government of India (in giving) AI and Indian monopoly in operating Haj flights. Allowing private airlines to operate on Haj flights may result in reduction in fares and reduction in burden of subsidy to the government."
In the reply to Mumbai-based activist Attar Azeemi dated June 22, Air India's Public Information Officer and General Manager (Finance) A J D'Souza said the subsidy provided by the government for every Haj pilgrim had increased from Rs 7,403 in 1996 to Rs 29,176 in 2006.
The number of pilgrims too had increased from 53,776 in 1996 to 1,08,372 in 2006. The total subsidy paid by the government is Rs 1,915.19 crore.
"Air India does not have the capacity to operate Haj flights. Therefore, aircraft are leased by AI for carriage of Haj pilgrims," D'Souza said.
Azeemi told: "Air India billed the government Rs 41,176 per passenger in 2006. Of this, Rs 12,000 was the air fare paid by Central Haj Committee of India (CHCI). The remaining Rs 29,176 was paid as subsidy to AI by the government."
The fare of Rs 12,000 per pilgrim was fixed jointly by the civil aviation ministry, external affairs ministry and CHCI.
According to Air India, the cost of Haj operations is much higher than the fare charged from passengers.
"Aircraft are wet leased for the purpose of carriage of pilgrims. The operations of the Haj flights involves carriage of pilgrims to Saudi Arabia in Phase I and operation of the aircraft empty on the return leg," D'Souza said.
In Phase II, aircraft are ferried empty to Saudi Arabia to bring the pilgrims back to Indiao been a substantial increase in fuel prices that contribute to the total costs, he said.
Noting the points made by Air India in its reply, which was provided under a directive from the civil aviation ministry, Azeemi said: "Why is government persisting on AI has the monopoly and wasting crores of tax payers' money?"
Though the fare charged by Air India from each pilgrim is Rs 41,176, its own low cost carrier Air-India Express charges less as return fare to destinations like Abu Dhabi, Azeemi claimed.
The government should privatise Haj flights to make the fares more competitive. If the government wishes to give a subsidy, it can give it to pilgrims instead of Air India, Azeemi said.
Taking note of the issue, Tariq Anwar, a member of the Parliamentary Standing Committee on Personnel, Public Grievances and Law and Justice, said, "I will write to Prime Minister Manmohan Singh and take up the matter during the forthcoming monsoon session of Parliament."
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